JAKARTA (TheInsiderStories) – Indonesian government encourages oil and gas Contractor partnership contract to optimize operations. Ministry spokesman said the performance of 6 of 10 largest oil contractors had not yet reached lifting target set by  Executor of Upstream Oil and Gas Business Activities in the first half of 2019.

Head of the Migas special work unit Dwi Sutjipto explain that from 6 company there were 5 owned by State-owned oil producers, PT Pertamina, namely Pertamina EP, Pertamina Hulu Mahakam (PHM), Pertamina Operation of South East Sumatra (OSES), Pertamina Upstream Energy Offshore North West Java (ONWJ), and Pertamina Hulu East Kalimantan (PKHT).

Meanwhile, similar performance was also experienced in gas lifting, especially in Mahakam Block management. lifting performance is not optimal so that production is still standard. MEMR Ministry hopes that Pertamina evaluates and seeks solutions to overcome the problem.

“Pertamina needs to evaluate its performance to increase oil lifting,” Sutjipto said in his office on Monday (29/7).

He explained that the issue of oil and gas lifting must be handled as quickly as possible by Pertamina. According to him, in solving this problem government must consider aspects of technology implementation.

“Government must increase the transfer of knowledge and the investment process that must go fast,” he said.”We expect Pertamina’s management and employees to focus on improving performance,” Sutjipto said.

In addition, Deputy head of special oil and gas work  Migas Sunandar explained that decline in gas lifting was also influenced by low absorption of excess cargo at Muara Bakau, which PT Pertamina (Persero) did not sell as operator of Bontang liquefied natural gas (LNG)

“Reducing production from 645-670 mmscfd to 500 mmscfd because there is LNG that is not absorbed,” Sunandar said.

Government also asked Pertamina to immediately take strategic steps to boost oil and gas lifting, especially the case of gas leakage in the Work Area of ​​PHE ONWJ, the last two weeks.

Reportedly, in semester I-2019, the realization of Pertamina EP’s oil lifting only reached 75,293 barrels of oil per day (bopd) or 89% of the 2019 state budget target.

Furthermore, Pertamina Hulu Mahakam only reached 34,680 bopd or 69% of the target. PHE OSES only reached 27,841 bopd or 87% of the 2019 State Budget lifting target.

PHE ONWJ recorded realization of 28,405 bopd or 86% of the target. Whereas the lifting realization of PHKT is 10,663 BOPD or 95% of the target.

Written By Willy Matrona Email@TheInsiderStories.com